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Vietnam’s bonds advance on lower yield outlook for treasury sale
Vietnam’s five-year bonds advanced for the first time in four days on speculation the State Treasury will sell debt at lower yields next week. The dong was unchanged.
The yield on the five-year note slumped near the lowest since March last year, dropping 6 basis points to 8.56 percent Wednesday, according to a daily fixing price from nine banks compiled by Bloomberg.
“Yields may continue to go down on anticipation the State Treasury will sell bonds next week at a lower yield,” Do Hoang Quynh Trang, a fixed-income trader at Hanoi-based Ocean Commercial Joint-Stock Bank said Wednesday in Hanoi.
The State Treasury will sell VND1.5 trillion ($85.7 million) of two- and three-year bonds on February 12, according to an e-mailed statement from the Hanoi Securities Trading Center, where the auction will take place.
The Treasury will increase bond sales 6 percent to VND22 trillion ($1.3 billion) in the first three months this year as the government funds an economic stimulus package.
It plans to sell VND12 trillion of bills and VND10 trillion of bonds by the end of March, it said in a statement Wednesday. That would compare with VND20.7 trillion of debt sold in the fourth-quarter.
The Treasury last month said it plans to almost triple the size of bond sales this year to about VND110 trillion, raising funds to help the government cope with an economic slowdown.
Vietnam’s dong traded at 17,485.50 per dollar as of 3:33 p.m. in Hanoi Wednesday, according to data compiled by Bloomberg.
Bloomberg
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